Skip to main content

tv   Worldwide Exchange  CNBC  June 17, 2016 5:00am-6:01am EDT

5:00 am
o good morning. stocks around the world. as oil prices rebound and brexit fears ease. >> christine lagarde givering a speech in vienna on the future of europe. we'll bring you the highlights coming up. and game 7 and the cavs make a historic come back trouncing the golden state warriors to force a decisive final game in the nba finals. friday june 17, 2016. "worldwide exchange" begins right now ♪ hello friday ♪ i've been waiting for you for a long time ♪ ♪ you just saved me
5:01 am
♪ >> good morning and welcome to "worldwide exchange" on cnbc. happy friday i'm sara eisen. >> are you saying happy friday to me or to everyone else. >> so you and the world. >> you tilted your head to me a little bit. i felt that very nice. indeed i'm wifrt frost let's have a look at the market action. >> futures seeing little action. remember yesterday we did break a five day losing streak. markets ended higher. the dow ended up almost a hundred points. futures down 5, s&p down 1. nasdaq down 1 as well. some of the pressure points are easing right now but quick a look at the 10 year treasury note yield went as low as 1.52 yesterday. back above 1.60. high yields above 1.60 this morning. first time we've seen german debt and japanese debt overnight
5:02 am
sold in several days. >> roller coaster ride yesterday. the dow was down 170 at one point by the close. we were in positive territory. a big turnaround we are going to dive into now. global markets do appear to be assessing the risk of a brexit. strong comeback yesterday. making a bounce stronger bounceback today as you can see up to 1.429 having hit a two month low yesterday of 1.4013. both uk referendum campaigns though have been suspended today after the killing of british politician jo cox who was an advocate of britain remaining in the eu. early reports out, i've spoken
5:03 am
to experts who say that is highly unlikely. we're expecting campaigns just to be suspended the rest of today. we'll have more on the lead up to next week's historic referendum in just a moment. just quick though to dwell on that dreadful story from yesterday, of course. markets did rally in and around that time. we still have no idea of the motives but either way the fact that she did advocate the remain camp, some traders obviously feeling you might see some sympathetic move in the polls. and other thing. the betting market odds themselves, less pronounced. usually those two track very closely. highlighting perhaps we've seen a little bit overreaction in terms of sentiment you might expect towards remain. >> on that note this is becoming a very crowded trade betting against the pound. last week we found out there is
5:04 am
a $6 billion short against the pound. the most negative position we've seen since 2013. let's show you the early action in european equities right now. much calmer on a friday morning. more than 1% gain for the german dax. these stocks very hammered a lot harder than the u.s. stock market on brexit fears. the banks are leading. the banks have really been the eye of the storm when it comes to some of those concerns about brexit. as you can see there is the european banks. barclays especially. it has been singled out as one of the the banks with the most to leave from a brexit vote because of the heavy exposure to london and investment banking. >> and deutsche bank of course which is not listed in london and could be one of the beneficiaries of tough fight backs if britain does leave but the fact that backs are leading the charge in european equities
5:05 am
today does suggest the rally is brexit related because those stocks are the ones that have been hurt most on days of leave sentiment. let's have a quick look at the german 10 year bund yield because it is back in positive territory, albeit by -- well not even 3 basis points. bang on flat again. at least the chart is not red or the writing of the yield is not red. it is just in positive territory. >> 0.002%. >> time to celebrate. >> ending a three day rally and even japanese bunds are rallying. >> -- one basis point return every year for 10 years. >> and in switzerland you get negative all the way out 33 years i think. >> and asian stocks enjoyed a little bit of a rally. japan up a nice 1% as we've seen a little less of a reaction in the yen.
5:06 am
the yen in fact is stronger today but hardly. 0.1%. >> hong kong up a little. shanghai as well. >> >> announcer: the broader market picture. oil has been under pressure. and interesting stocks managed to rally even though oil stayed lower yesterday. the energy sector was the only one closing in the red. bounce back today. 1% for wti crude. 46.69 right now. brent is over 47, 47.90. even nat gas getting a pop. on the flip side let's show you do dollar. wilfred mentioned the pound. stronger a better sign. yen, weaker. also a better sign in terms of sentiment, helping the jpds stock market overnight. and the euro stronger as well. lot of folks are watching the euro into the brexit vote because the question is what does it mean for europe?
5:07 am
>> extraordinarily big turnaround in the pound though over the last 24 hours. lows yesterday were close to 1.40. the highs we're close to right now are 1.43. so a very significant move the sterling in the last 24 hours from trough to peak. the betting odds towards remain have extended a little by of all the moves wean receive, this has been a much more exaggerated one in the pound -- >> -- weekend. so we'll -- >> every day next week as well. >> quick gold because gold's been a big mover. reaching highest level in almost two years yesterday backing off as the stock market turned around. and continuing pressure on gold this morning. >> after all the excitement from the fed and other central bank meetings the trading week wraps up on a quieter note. there is just one report out on the calendar. may houdsing starts. new construction expected to have slipped last month after
5:08 am
surging in april. building permits are to rise, expected to rise but at a slower pace than in april. i don't think many people are going to be too focused on that compared to brexit. >> compared to brexit. but the housing market is showing signs of life in the u.s. yesterday talking about how home builder sentiment is looking up. and it is a good sign. important part of the u.s. economy. >> i knew you would bring it back to make it relevant. >> i will not let you discount housing starts. >> chancellor george osbourne and -- canceling speeches overnight to pay tribute to jo cox. officials used an annual dinner in london to pay tribute. >> this country faces a huge question in a week's time, one that will determine its future for decades to come. the referendum is a great
5:09 am
exercise in democracy. but the campaign has been suspended on both sides out of respect for jo and her family and out of respect for that democracy that she served. >> joining us now to discuss the turn of events over the last 24 hours but more broadly what we expect to happen in the upcoming referendum on the eu in the uk. peter spiegel, good morning to you. thank you for joining us. let's quick cover off the terrible news of yesterday in the uk. we did see some sentiment swings towards remain whether looking at steriling or betting markets. what do you think has sparked that exactly because we don't really know the motive of this event yesterday. >> we don't know the motive. can. there was rumors postponing the
5:10 am
entire referendum which is not true. and we've seen this morning some of the gains have backed off. there have been precedents in sweden, germany, other places where they have had political assassinations that have happened before election days. we've seen in both countries it actually had very little impact on the votite. i think at this point it is speculation in the market. volatility, huge volatility. so any news causes great swings. so i don't think anyone can predict the impact this is going to have. >> and peter, break us down the latest expectations. six days to go, of course. the ft covers all the polls and brings them together. what are your latest expectations of the most likely outcome of this vote? >> certainly happening just before this event was the momentum shifted. we had seen for months since polling started that remain went from a healthy lead to narrow
5:11 am
and now literally in the last few days almost every poll. and it brings together the trend linicious not just individual pops but the whole trend. almost every poll had been for leave and the momentum was clearly pushing in that direction. and talking to government officials, particularly on the remain side panic had begun to set in. and the george osbourne had to cancel a speech last night. all indications trying to double down on this project --. that is their economic line. so panic had set in on the remain side. momentum was building for leave and a lot of people really thinking that the deed was done. that this was going in that direction. again we don't know what this 24 hour, 48 hour pause is going to do with the -- ends the momentum in any direction. changes sentiment. i got to say right now it is just as unpredictable those of us from the outside as on the
5:12 am
inside. we're getting the same reactions from inside the campaigns t leaders, as we are looking from the outside. wii see is same polls. talking to the same people. they are no wiser than we are. so that's why you see so much volatility right now. >> what are you going to be watching? i'll be watching the pound and the betting odds. what are your indicators in the market? which polls are important? give us a the play by play of what we need to be monitoring up until thursday? >> it is not the individual polls that hit every day. because they have swung considerably. it is again this trend line. and i think as you see a group of polls moving in the same direction that is what we're watching very closely. and that is actually both what the markets are watching. as you see the build up of certainty in the polling data you have seen the markets fall. sterling in particular and the betting odds. and the bund t u.s. treasuries. this flight to the economic 10 year benchmarks.
5:13 am
as the markets get more and more nervous they are pushing a lot of these interest rates below radioze zero. i think those polls are the first thing everyone is going to be looking at. and again talking to people in the city that is what they are watching. >> quick i want to ask about mark carney and the bank of england who is getting heat for weighing into the debate. appropriately talking about the economic impact. any sense of what the contingency plans are at the bank of skpengd what is kboings on behind the scenes? >> there are contingency plans for this. they have been going on for weeks. as before the scottish referendum. things like pushing liquidity into the system, worried that things would freeze up on a leave vote. all of those things they were preparing to do for the scottish referendum are basically replicated again this time around. and remember we got the same kind of criticism to the bank of england ahead of the scott,
5:14 am
referendum as well. that the independent central bank is improperly moving into the political arena. and the question we are asked and writing about quite a bit is institutionally. even if the -- the group of people who watch these things think that carney is behaving in a proper way, institutionally, senior politicians, former party leaders are coming out so publicly and kris criticizing the bank what does that do to the reputation? does that do long-term or medium term damage to carney and the bank itself? and i think there is a lot of concern about that. most people don't think he's doing any improper but reputation does it harm him in the system? >> and of course his chance to give his final views in his speech last night suspended a as all campaigns ahead been. thank you for joining us this. still to come. stocks rallies around the world
5:15 am
as oil prices rebound and brexit fearsise. matthew beasley is going to weigh in on that and much more next. what are you doing? getting faster. huh? detecting threats faster, responding faster, recovering faster. when your security's built in not just bolted on, and you protect the data and not just the perimeter, you get faster. wow, speed kills.
5:16 am
systems open to all, but closed to intruders. trusted by 8 of 10 of the world's largest banks.
5:17 am
great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. brexit is essential having an impact on equities around the world. there's already been a clear effect on u.s. bonds, as you can see. 1.6%, having been above 1.9 just
5:18 am
a couple of weeks ago. while european equities have declined, the u.s. equities have been more resilient. the dow down just over 1% in that time period. what about companies with high uk kprexposure? however, most of this top 10, their sales are predominantly within the uk. not really effected by bere negotiations of trade deals. what about on a sector basis? banks are likely the worst hit. uk has a trade deficit with the rest of europe overall making retaliation less likely. within the financial serves has a big surplus making error -- response in future trade negotiations. of the top five banks goldman sachs is the highest exposure.
5:19 am
bank of america is lowest at 7% and average 14%. the biggest impact has already happened, delayed rate hikes and lower yields. >> and i wonder if we're going to have to be putting this list together for exposure to europe as the whole. the uk is one thing. but when you are talking about europe you are talking about the biggest economy in the world and euro zone and we'll see how europe reacts. >> exactly right. suspending following the british politician's death. jo cox an advocate of the remain camp in the eu. and mark carney paying tribute to her in a speech last night. >> the best tribute that this room, this city and this country can give to the memory of jo cox is to renew our shared commitme commitment, whatever our differences, to promote the common good in the united
5:20 am
kingdom and the world. >> here to discuss the uncertainty surrounding next weeks referendum, matthew beesley. good morning. thanks for ro joining us. >> morning. >> so are you in the camp that is loading up safe haven assets like german bunds for the bridge of getting zero in return? or are you looking at this brexit vote as the buying opportunity for risk assets? >> well i think right now as we sit it is just too close to call. and markets have been i'd argue wonderfully official lly efficig us to where we are today. uk voting to leave. 50% chance of stay vote. and if i look at equities and
5:21 am
sterling. when i think about ppp relationship, purchasing parity. a underlying true value of when you take into account interest rates and inflation i think markets having priced in about 40% or so of what we consider to be a likely downdraft in the event of the uk voting to leave. >> you think if we look at equities rather than currency the relief rally on a p remain vote would be similar in size of the fall we'd see on an exit vote? >> relief rally i think would be slightly higher but depends on the nature of the remain vote. potentially three outcomes. chance of resounding remain, a slim remain and the decision to leave. opinion polls would suggest resounding to remain is unlikely. really looking at the slim vote to remain or decision to leave. and in a slim vote to remain there is a risk.
5:22 am
it throws up a lot of other questions about the validity of the vote to the extent this question gets revisit or meant for the underlying economy in terms of momentum and ultimately with trading relationships with the eu. doesn't mean we see corporates treat uk based investments a touch more suspiciously than they have in the past, nervous of this question getting revisited. so i think if we do get a remain it is likely to be a very narrow remain and there could be still questions overhanging the economy and the market. and hence that lack of asymmetry in the risk reward. >> you clearly looked a lot at symmetry and a's priced in. >> we're doing very little right now. this is very much out of the market purview.
5:23 am
markets have been very complacent about the chances of this referendum getting close. what unnerves us is just how large the amount of undecided are. 10 to 15% that are yet to make up their mind. and these are not apathetic voters. those are people that yet to make up their mind and will cost a ballot. a risk that events between now and thursday has the ability to influence people's decision making process. and as such i still think despite the betting markets and polling data there is still every chance this vote goes both ways. on the banks they have been hit the worst. is london as a financial center
5:24 am
under threat? >> i think there is certainly going to be challenges. lots of corporate ceos. about the need to reconsider employee head count in the uk in the event of the leave vote. certainly there will be those that weigh up etc. etc. post a decision to leave the eu by the uk. >> matthew beesley, of henderson global investors. rights still to come. scores and more. lebron james leads the cavs to victory last night forcing a decisive game 7 coming up. steph curry and the warriors on losing side last night.
5:25 am
5:26 am
5:27 am
you get use to pet odors in your car. you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy.
5:28 am
looktry align probiotic.our digestive system? for a non-stop, sweet treat goodness, hold on to your tiara kind of day. live 24/7. with 24/7 digestive support. try align, the #1 ge recommended probiotic.
5:29 am
thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it?
5:30 am
you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. good morning. brexit fears easing at least for now. we'll bring you the global market reaction as stocks are rallying around the world. >> happening now christine lagarde is giving a speech on the future of europe. highlights coming up. and game 7, lebron james and the cleveland cavs make an historic comeback. it is friday, june 17, 2016 you are watching "worldwide exchange" on cnbc. ♪ i don't care ♪ i love it ♪ i don't care
5:31 am
>> good morning and welcome back to "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. happy friday morning to you. a look at the markets at this hour. yesterday a roller coaster session. dow down as much as 170 but ended in positive territory. about .3% of gains for the three indices today. broadly flat now. the dow called higher by 7. the 10 year treasury note is in and around 1.6%. we did get that relief rally in the middle of trade yesterday as brexit fears eased at the margin and that allowed the risk assets that have been suffering in recent weeks in relation to it to come back. and at the moment we're just above flat. >> breaking news on that note. imf managing director christine lagarde is speaking in vienna, urging people to vote to remain in the eu, stressing the
5:32 am
benefits of the uk. la guard noted that the imf already warned on the costs of leaving the eu. planned a broader report today on the british economy and impact of a brexit but delayed that this evening after campaigning was temporarily suspended on both sides following the killing yesterday of labor part lawmaker jo cox. christine lagarde at 7:00 a.m. eastern time. the imf in a tough position here because it doesn't like the weigh in to local politics but she and -- have come out very strongly in favor of staying in the eu and have come up with some strong analysis. >> they have. and this report today as appears her rhetoric has been dialed back from two and a half, three
5:33 am
weeks ago. very clear views on that day. and at lof fall out for her. meant to be impartial but come out with a clear view and just got cold feet on that. dialing back the rhetoric somewhat. >> and means an already diplomatic leader and speaker is going to be even more so. in the meantime global markets appear pob assessing the risk of brexit. as wilfred mentioned the pound is making a comeback this morning. after tumble to a 2 month low versus the u.s. dollar. back above 1.42. jo cox, herself an advocate in the remaining camp. early reports speculated things might be rescheduled. it doesn't look like that is going to happen. no matter what you can say about this tragedy there was a market reaction yesterday. >> right. and the likelihood of the date
5:34 am
being suspended is almost zero. so if that was why we had the rally yesterday, perhaps it was over done. also we've seen a move in the betting market but perhaps that move in sterling and with it u.s. equity was a little more pronounced. perhaps overreacted compared to the betting markets. so yes a easing of remain fears overnight and we've seen markets rally but at the margin the likelihood had shifted. so we don't want to overplay that oh now remain is back in front. >> one thing you -- you don't want to extrapolate, but this comes as a major shock in britain. you don't see this like you see this in the united states. >> the first time a certain british politician has been killed for about three decades. shootings at all are very very rare. absolutely right. and a huge amount of shock and sadness surrounding it. and it certainly resonates with people. would have been issues in the upcoming referendum is turnout.
5:35 am
if the young people turnout high resman likely to win. if the labor voters turn out highly the remain is likely to win. so far the labor part has been disunited. and one of the reasons people are pointing to is could this factor help unite the party behind its common issue which is to vote remain because she did advocate but it is very hard to draw conclusions from it. let's have a look at european equities right now because they have responded today. and one would say it is a sort of brexit-related rally. because when we dive into these gains, about 1.5% on in german dax ux it is the banks leading the charge. the banks have been suffering and they are surging today. deutsche bank up some 6%. uk banks have been suffering. barclays in particular. deutsche bank has been in the
5:36 am
eye of the storm despite of course being based in germany. the bond market, that's had a bit of relief. celebration for holders of the german 10 year -- or buyers today. because you get a positive yield again. just above 0% on that. so that responding as well. >> asian stocks closed over night a lot better in terms of the sentiment. the msci global stock market was at three month low. we've rebounded. the nikkei also coming back from a four month low. up 1%. hong kong and shanghai also closing in the green. we are getting some respite today but still some way from the $50 of a couple weeks ago. wti is up 1%, which is also helping sentiment in broader marks. the u.s. dollar, particularly
5:37 am
sterling against the dollar. it's up half a percent today. at the lows yesterday it was at 140. very close to 140. so significant turned in sterling. gold prices have enjoyed a decent run as all of this risk around brexit. off almost just 1% today. blow 1300 again. more macro factors. the via com drama. the latest. sumner redstone ousting some directors from the board and adding in new ones. >> sumner redstone removing five via com directors, including ceo philippe demon from the board. the trust that will assume voting control over via com and.
5:38 am
william schwartz. and here is a look at the new board. kenneth leer. nicole seligman. thomas may. and ron nelson, chairman of avis budget group and investors cheering the news. via com ending up about 7% and then extended gains in afterhours. and here is what former via com ceo had to say about the shake up on cnbc's fast money. take a listen. >> with clear management and direction with this reconstituted board it is going to certainly want to hit the ground running and take some quick action that there will be positive things happening for via com in its future. >> earlier this week that he no longer trust him to act in the company's best interest.
5:39 am
no team has ever come back from a 3-1 deficit to win the nba championship. the decisive game to see if that happens will be on sunday i night. steph curry had 30 points in the loss. but also lost his cool. the reigning mvp fouled out in the fourth quarter and then got ejected for throwing his mouth guard into the crowd. the first rejection of his career. want to watch in person?
5:40 am
you better be prepared to pay up. the courtside seats are selling for $52,000, each. on stubhub it is a great game. >> -- >> what a way to end the finals. philadelphia has become the first major u.s. city to approve a tax on soda by a vote of 13-4. a 1.5% tax that will effect not only sodas but tea and energy drinks. it is expected to raise over $90 million to fund projects like pre kindergarten expansion. >> and i can tell you they are going to fight the legality of this. they will continue to fight it. or they might end up raising the price an soda. when we come back, the must reads.
5:41 am
5:42 am
5:43 am
welcome back to "worldwide exchange." back to today's must read stories catching our attention. hugo dixon writing brexit why i'm voting to remain in the european union. if britain votes to leave, posttruth politics will have triumphed, polluting our
5:44 am
democracy. we must fight that. and joining us by phone, hugo, good morning. >> good morning. >> so what does this mean and explain your decision a little more. >> okay. post truth politics is politics where the politician and the commentators don't care about the facts. where they are prepared to make up facts. where they are prepared to twist facts. or where they just don't even do their research properly. so this is what i mean by posttruth politics. and in this referendum campaign that we are in the midst of in the final beat of in britain at the moment, there has been a lot of posttruth politics. in the article i give two examples. one is an example that is
5:45 am
emblazened on the leave camp battle bus. and it says we send 350 million pounds a week to brussels. that is what it originally said. they then changed to it 50 million pounds a day to they think. britain does not send 350 million pounds a week to brussels. there is a 350 million pound figure which is a -- contribution. but margaret thatcher when she was our prime minister several decades ago now, she negotiated a discount on our contribution. so we do not send that amount to brussels. >> you clearly from the article outline for economic reasons that you think it is a big risk to leave and i can certainly understand that. but this posttruth argument around the economy is happening on both sides. george osbourne suggested this figure of 4300 pounds per
5:46 am
household. that's based on gdp forecast out to 2030. no one can forecast out that far, can they? >> well sort of yes and no. we have done an --. impact of the so called scarce -- scares of both sides of the argument. and it is certainly true that the remain side has been exaggerating some of the arguments and has been more precise about things than it should have been. but we haven't found anything that is a downright lie of the same sort that we found from the leave camp. so if you take the 4,300, i think it is the midpoint or the central estimate of a range
5:47 am
where -- >> you think forecasting gdp to 2030 is possible. >> but that is not what it was. it wasn't trying -- and you have to actually look at exactly what they were doing. they were looking not at what gdp would be in 2030, but what the impact of a reduction in trade between britain and europe would have on our gdp in 2030. whatever our gdp would be in 2030 which is going to be influenced by a lot, of course you can't forecast that. so what you can say. and i think what most economists, almost economists i think something like 90% of economists who have been surv
5:48 am
surveyed on this. what they do accept is if britain leaves the european union and doesn't say in a single market. and that is what the leave camp is saying, then we will do less trade with the european union. that eu market is responsible for half of our trade. and if you do less trade that means there will be less business. and that will be worse for the economy. so i think that that's a reasonable point. but what i would agree with you is it is too precise a figure for george osbourne to use, that 4300 figure. but that -- >> mr. dixon. thank you very much. we are running out of time. we have to leave it there. certainly true the economists predominantly say leaving would be a bad thing but also certainly true both camps -- >> and doesn't get into the immigration issue which is the other side. you can read more and it is also on that's hugo dixon. >> and approaching the top of
5:49 am
the hour. that means "squawk box." joe kernen. good morning to you. >> we are -- we got no time now after that. this if i tried to make a point like that -- that was fairly secure. what happened yesterday? that's all i want to know wilfred? reversed completely. what happened in the betting market? i can't really find that. it must have -- remain back up above 70 yesterday? >> it didn't quite get above 70. there was a move and i think the move in sterling and other financial markets was more pronounced. >> indicative of some weird -- just sort of a feeling. we went from -- that was a big reversal in this country. >> big time. >> and totally based on supposedly brexit fears easing. i just didn't see where the evidence was. so we're pretty clear remain now wilfred? >> no not clear at all. the last few weeks you would say
5:50 am
the momentum very much behind leave it. will be interesting to see monday morning when the campaigns are back on track if the sentiment mazz has any real traction but the last week or two is still momentum towards leave. >> and cleveland or golden state? >> that's exciting, sunday night. although british time will be like early early morning. >> i've sort of been saying it is really go to go 7 games when it is 3-1. but funny how that works. $52,000 for the courtside seats for the last game. seven games are great. >> joe, we're gonna have to leave you there. >> that other guy. he's like blah blah. i don't know what he's saying, you know. >> and if you haven't got
5:51 am
$52,000 for "squawk box" you can keep watching it here in 10 minutes time. futures holding on to slight gains this morning. basically flat. and we'll discuss that and more when "worldwide exchange" comes right back. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday. because you can't build the business of tomorrow this man creates software, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this vice president, this little kid, oops, and this obstetrician,
5:52 am
who works across the street from this man, who creates software. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. igoing to clean betteran electthan a manual. was he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush. you gein your car. odors you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy.
5:53 am
that membership has made the uk a richer economy, but it has also made it more diverse, more exciting and more creative country. but as in all countries there are people who are struggling in this new environment. but i would contend that for the majority of citizens, this has been a success story. >> that was imf managing director christine lagarde speaking in veeb vienna, and steve sedgwick has an interview with her at 7:00 a.m. eastern time.
5:54 am
joining us is julian emanuel. >> good morning. >> how expensive as -- against volatility in the last couple of days? >> historically. and what we would say is regardless of political outcomes next week in europe, investors are very well protected against volatility. more so than actually in the depths of the market lows in 2008 and 2009. >> so if we do get a positive political outcome, do you think the rally would be bigger than the fall we'd get if a negative political outcome? because the protection is already there. >> yes. essentially you have built up a wall of worry. and we've had very negative investor sentiment literally this entire year, which hasn't dissipated and in front of the event risk remains and we do think that would power markets perhaps to all time highs. >> and the banks are the worst
5:55 am
prveging sector this week and year. and how much bad news whether brexit or super low interest rates is already priced into that group? >> we think almost all of it is priced in. it is a sector that's been universally despised. investors are not there in terms of their dollar commitments. and we think that it is vulnerable now to upside surprises, where it is a turnaround in interest rates and we could expect interest rates to creep higher in the weeks ahead if the news is positive over the next couples of weeks politically. >> do you think as the year goes ahead that u.s. equities will predominantly also respond to fed things again? at the moment the fed is in the background. >> the fed is in the background -- >> the fed is never in the background. >> that's true. and the noise is very conflicting. no question about it. they have changed tact on a number of occasions. the data dependency has gone to
5:56 am
new all-time levels but essentially when you step back the equity market is about earnings and the economy. and we see both picking up towards the back half. and that is going to keep equities -- >> doesn't everything change if britain votes to leave? i know people here in the u.s. look at it as a buying opportunity. but if that happens and you see this massive rush to safety and action by central banks, doesn't that put the fed in play? >> well the fed has basically told us over this last week that it is going to continue to stay patient and it has the ability to remain patient. be our point again would be that investors have already prepared for potential volatility based on political outcomes over the next week. so the surprise would be if things are more positive, which is where we see the upside coming from. >> you nailed it without saying the b word. julian emmanuel of ubs. >> ending the week on an optimistic note.
5:57 am
that's it for us here on "worldwide exchange." "squawk box" is next on cnbc. ♪ ♪
5:58 am
"dinner!" "may i be excused?" get the new xfinity tv app and for the first time ever stream live tv, watch on demand, and download your dvr shows anywhere.
5:59 am
good morning. stocks rallying in europe and asia. we rebounded yesterday. oil also rebounding as brexit fears are easing. pound rebounding. why? a rundown all of this morning's big movers straight ahead and the "squawk box" ceo call is in session. sounding off on the company's stock. and a potential bubble in auto loans in the future of the industry. and get ready for game 7, it was always meant to be. highlights from lebron's dominate performance. plus we'll show you if you don't already know why steph curry got
6:00 am
ejected in the fourth quarter. we don't wear mouthpieces here. i've thought about throwing other stuff at some of these guys. it is friday, june 17, 20i 16 and "squawk box" begins right now. ♪ >> live from new york, where business never sleeps, this is "squawk box." good morning welcome to "squawk box." i'm becky quick. let's check out the u.s. equities at this hour. modest declines. but this is not a lot at this point. dow futures down 6, s&p down 2, the nasdaq down 1 after the market stangd a comeback yesterday. check out what happened overnight in asia. the nikkei was higher. it was up about 1%. and you did see modest advances for both of the chinese markets. in europe in the early trading at this point it looks like the markets are also


info Stream Only

Uploaded by TV Archive on